If a nation does not have an absolute advantage in producing anything, it
a. can have no comparative advantage either.
b. will have a comparative advantage in the activity in which its disadvantage is the least.
c. will benefit if it refuses to trade.
d. will export raw materials and import finished products.
Question 2
Firms buy and sell the right to pollute:
a. under a system of compliance standards.
b. under a free market system where there is no government intervention and property rights are not well-defined.
c. under a system of transferable pollution permits.
d. under a pollution tax system.
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